A selection of your property questions answered
Agent told us to drop our price
I live in a cul-de-sac in a modern estate and my house is for sale through the local estate agent. Two weeks after our house went on the market, a house across the road came on through the same agent. Our agent has now advised us to drop our price as our house is not as decoratively perfect as theirs. To make matters worse, the agent insists on showing our house first and then showing theirs. Needless to say, our house is suffering by comparison. What can we do?
It's your agent's job to sell your house for the best possible price and to give you a professional level of service while he's doing it. If the issue is all about tatty decoration then you shouldn't worry. Buyers will be able to see past that - especially if your house is now pegged at a price lower than the one over the road. It would be more of a concern if they had a fantastic new extension and you didn't, yet both your houses were on the market for roughly the same price - then your house would be viewed negatively. In new estates, gardens can be a real selling point - is yours bigger than theirs? Your house has a different orientation from theirs. Is yours sunnier or brighter? You need to make sure that your house's natural attributes are pointed out and that you are showing it at its best - decluttering etcetera. Selling a house is a nervous time, but competition isn't a bad thing. People might view your house and theirs as a before and after, and if it's only a few litres of paint involved then most buyers won't be too bothered.
What tax must I pay on house gift?
My parents have a house (let out for several years as an investment property) which they want to give me as a gift. What are the tax implications for me or for them?
Lucky you! How much is the house is worth? That is the first thing you have to ascertain - so have the house valued by a professional valuer. A parent can gift €441,198 to a child without the child paying Capital Acquisitions Tax. Have you inherited or been "gifted" anything else? CAT is cumulative, so if adding your parents' gift to other gifts puts you over the €441,198 threshold, whatever is the excess will be viewed as a capital gain and you will have to pay 20 per cent tax on that excess. However, your parents will almost certainly have to pay Capital Gains Tax (CGT). The Revenue will take the view that your parents have disposed of the property for market value and they will have to pay tax on the difference between what they bought the property for and the current market value.
If you do have a CAT liability, then depending on your parents' level of CGT, you may be entitled to a credit for their CGT and you may have a reduced level of CAT. Aside from these tax liabilities, you will also have to pay stamp duty on the transfer on the property - although transfer between parent and child is at a reduced rate of duty. If your parents have had an investment property for some time then they undoubtedly have a tax advisor and that person should be consulted for professional advice before you do anything. You don't mention whether you have any siblings - it's wise for the sake of family harmony in this sort of situation that other siblings are aware of the gift.
Send your queries to Property Questions, The Irish Times, 10-16 D'Olier Street, Dublin 2 or e-mail propertyquestions@irish-times.ie.
Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.
